Career in Insurance

Introduction

Insurance is an agreement between the insurer and the insured, where the latter pays a certain amount of money known as the premium on a monthly or annual basis. The former in turn commits that a large amount of amount of money would be paid to the insured in case of an adversity.. It is better to have an insurance as it helps bail out of  difficult situations like someone in the family falling sick or in case of an accident or robbery.  Insurance companies have different policies for almost any kind of situation one could imagine. The most popular forms of Insurance policies sold by companies are Life Insurance, Travel Insurance, Vehicle Insurance, Health or Mediclaim Insurance and Home Insurance. There are several government bodies viz. Life Insurance Corporation, National Insurance Company and private companies such as ICICI Prudential, Max New York, Birla Sun Life, Bajaj Allianz, and Tata AIG amongst others, which sell Insurance policies.

Step-by-Step

As a student, you may want to take up Insurance as a career after graduation. However, a few students prefer to take up the subject after twelfth standard itself. Several companies these days offer part-time jobs to students after school. Although, it is recommended that you finish college and then pursue a Master’s in Insurance Management to be thorough with the subject.

The following is the course content that a Master’s Degree in Insurance broadly offers; 

1.    Principles and Practices of Life and General Insurance

2.    Life and Non Life Insurance Domains

3.    Insurance Laws

4.    Life Insurance Underwriting and Risk Management

5.    Liability of Insurance and Life Insurance Claims

6.    Reinsurance and Life Insurance Products

The aim and objective of this study is to introduce you thoroughly to the various facets of Insurance.

Start Early

If you have an aptitude for people skills, selling skills and are passionate about solving people’s problems and providing them financial security, then Insurance is your way. However, you must not choose Insurance as a career merely for the sake of  making money. Instead, the importance of Insurance   the real world must be understood at the very outset.

Is it the Right Career for Me?

As a student, in college or after having completed school, if you feel you have good selling skills and people skills, then Insurance most definitely is the right subject for you. You may join one of the popular Insurance companies as an Insurance Agent or a Sales Executive- Insurance. For this, you will need to clear the agent exam conducted by IRDA (Insurance Regulatory Authority of India). After working for a few years you can look forward to becoming an Insurance Manager.

There are primarily two skills required for taking up Insurance as a career option: First is the ability to easily befriend people. The second important skill required is the ability to see their problems clearly and make them understand the need for insurance. You can clearly explain to them that Insurance provides a safe cover for any untoward events that may occur in future. At least money-wise, Insurance can make people feel secure.

What would it Cost Me?

The average annual fee of the MBA Insurance program can vary from Rs 1.0 lacto Rs2.0 lacs depending on the university and school you choose. Some of the best Insurance schools in India include ICFAI, NIA and Birla Institute of Management besides several others which provide distance education courses, diploma programmes and regular courses as well.

Funding/Scholarship

There are no separate loans available for Insurance courses alone as such. However, working professionals may study through their company sponsorships. Similarly, education loans of up to Rs. 7.5 lacs are available through banks such as State Bank of India.

Job Prospects

The job prospects for an Insurance professional are increasing day by day. You may join as an Insurance agent where your main responsibilities would include selling insurance policies to people. For this task, you would be given target amounts, which you will have to earn through premiums. On a commission basis, you will be compensated in turn. Other jobs include Sales Manager- Insurance wherein you would handle a team of Insurance agents for selling Insurance policies. Besides, you may join as an Insurance Underwriter as well.

Pay Packet

The pay package of a fresher in an insurance company varies approximately from Rs. 10,000 to Rs. 30,000. For higher positions, you may look upto Rs. 1 lac per month. If you have passed out of prestigious B-Schools after completing your Master of Business Administration in Insurance, you may expect a higher salary during the first job itself.

Demand and Supply

Insurance professionals are highly in demand these days. According to statistics, only 14% of world population has been covered by Insurance professionals, which means there is much potential in the 86% population that is still untapped. So basically, the demand is much higher when compared with the supply. What is needed is people with passion for the subject and business acumen. As they say, “Insurance is a subject matter of solicitation”. So clearly, a lot of revenue can be generated using this field if the policies and systems are laid fair and correct.

Market Watch

In the past few years, several popular Insurance companies such as Max New York, ICICI Lombard, Bajaj Allianz and others have come up with new policies to attract buyers. Most of the policies are reliable and of benefit to public. The market has only seen an upswing for the Insurance industry except during the slowdown of 2009, when there was a steep decline in financial position of all top companies.

International Focus

Insurance is a very popular method of securing one’s finances, assets, life and properties. The sector is highly trusted and systematic in developed countries such as the United States and the United Kingdom. In India, the systems are developing and will take some time to gain importance. However, companies such as LIC (Life Insurance Corporation of India Ltd.) and GIC (General Insurance Company of India Ltd.) are two of the most trusted companies. Besides these, all private companies work under the Insurance Regulatory Development Authority (IRDA) Act.

Positives/Negatives

+ives:

• The industry growth is on an upsurge. The opportunities are increasing day by day for people with strong people skills and selling skills.

• The overall industry growth is assumed to touch an all time high in the coming years. Insurance is seen as the career of the future for students et al.

• There are several professional institutes such as NIA in Pune that provide excellent courses in Insurance for students. Besides, there are institutes such as Birla Schools and ICFAI that provide different courses to students, both regular and distance education-wise.

-ives:

• The students or Insurance professionals need high convincing skills to persuade people in buying insurance policies. Sometimes, this may be disliked.
• There are several companies venturing into this business day by day. For instance, Reliance is one recent company to have ventured into Insurance business. Due to this, sometimes it may be difficult to trust the reliability of the organization.

Different Roles, Different Names

Insurance can be sold with different names but ultimately the aim is to insure somebody against untoward incidents such as accidents, thefts and natural calamities. The different types of insurance policies include Life Insurance, Health and Mediclaim Insurance, Home Insurance and Vehicle Insurance to name a few.

Top Companies

On the job front, based on random statistical information, the following are the top 10 Insurance companies in India:

Life Insurance Corporation of India (LIC), Bajaj Allianz General Insurance, ICICI Lombard General Insurance, ICICI Prudential Life Insurance, Birla Sunlife Insurance, Tata AIG General Insurance, New India Assurance Co., Iffco Tokyo General Insurance, Oriental Insurance Co., and HDFC Standard Life Insurance.

Tips for Getting Hired

You may follow the below mentioned tips to get selected as an Insurance professional after completing your bachelor’s or master’s degree in Insurance:

1. Check the websites of the best Insurance companies for the job openings and apply for the same.
2. Develop an excellent friend and contact circle to avail their reference in future for negotiating in Insurance deals.
3. Read necessary books on selling skills, business etiquette and business communication.
4. Upgrade yourself with latest world Insurance scenario and new strategies that aren being introduced.
5. Update yourself with the various laws and regulations such as IRDA act and the following amendments that may be applicable to Insurance policies.
6. Update yourself with the top-notch finance companies and their stock exchange status so that you can plan your selling and negotiating accordingly.